The annual Ipsos Life in Australia Poll ranks the region number one not just among regional areas, but also metropolitan areas.

Warrnambool and the surrounding region scored 68.7 per cent, higher than neighbouring south-east South Australia which scored 63.9 per cent.

It also outscored the most liveable metropolitan areas, with inner Perth topping the list with a score of 68.6 per cent followed by central Adelaide and the Adelaide Hill on 67 per cent.

The region ranked above average in all areas - feeling safe, access to natural environment, access to health care and a strong sense of community.

Mayor Tony Herbert was born and grew up in Warrnambool but moved away to study and then work in Melbourne before moving home.

"I love living here. There's so much to do," he said.

"Warrnambool's even that good that even the locals holiday here over summer."

Cr Herbert said being named the top place to live in Australia was fantastic.

"We even outrank all the metropolitan areas as well. It's a pretty amazing feat.

"It's a real show of the strength of the community and the place that we live."

He said Warrnambool was a place with a strong sense of community where people get behind campaigns such as the cancer centre work together to raise funds in record time.

Warrnambool topped the rankings of the annual Ipsos Life in Australia Study which asked 10,000 people to rate the factors that affected their decision about where to live.

Member for Wannon Dan Tehan said anyone who lived in Warrnambool already knew it was a wonderful place to live. "Now the rest of Australia is in on the secret," he said.

Member for South West Coast Roma Britnell said the area's natural beauty, congestion-free traffic, access to high quality health care and education were among the region's top qualities.

"There are few other places that you can be at the beach five minutes after knocking off work. There is an incredible arts community and exceptional food and wine," she said.

However, she said there was always things that could be improved upon, mainly when it came to connectivity.

"Our roads need some significant improvement as does our rail service. Getting those two things up to scratch will improve livability even further," she said.

Jeremy and Amy Dixon made the move to Warrnambool two-and-a-half years ago to give their children - Isla,10 and Isaac, 8 - a chance to experience the rural lifestyle they had growing up.

Mr Dixon grew up in Dunedin in New Zealand and Mrs Dixon near Dunkeld, and the couple said life in Warrnambool was a change of pace for the family after 15 years in Melbourne.

Warrnambool's lifestyle, affordable housing and location close to the beach means the couple can be at work within five minutes, and pop out during their lunch breaks to attend school concerts.

He said spending less time in traffic commuting to work had given them more opportunities to get more involved with the community.

"You can make a tangible difference in the community. That's harder to do in the city," Mr Dixon said.